Mayor breaks city council’s tie to double occupational tax rate to 1 percent

Bardstown Mayor John Royalty broke the city council’s 3-3 tie to give final approval to double the city’s occupational tax rate from 1/2 to 1 cent per $100 of income earned in the city limits. The tax also applies to business income.

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Tuesday, Sept. 13, 2016, 10 p.m. — Citing the need “push the city forward,” Mayor John Royalty broke the Bardstown City Council’s 3-3 tie vote to double the city’s occupational tax.

The occupational tax rate for the past 12 years has remained the same at 1/2 a cent per dollar of income earned in the city limits. Following Tuesday night’s vote, the tax rate doubles to 1 cent per dollar of income.

“This city is going to move forward and this is what’s got to happen,” Royalty told the council prior to casting the deciding vote.

Royalty said he looked back through the city budget and without making extreme cuts, the tax hike is necessary to continue the city’s fire and police protection and allow funding for the needed infrastructure upgrades and repairs.

Councilmen Bobby Simpson, Roland Williams and Francis Lydian voted against raising the tax, while Councilmen Bill Buckman, Fred Hagan and Councilwoman Kecia Copeland voted in favor of the increase.

The rate will become effective Jan. 1, 2017. The change will mean an estimated $2.2 million in additional occupational tax revenue to fund the city’s general fund. The general fund pays for services that do not create revenue, like police protection, fire protection and street and sidewalk repairs.

The tax is applies to all wages and compensation paid in the city, as well as the net profits from businesses that operate in the city limits.

Councilman Roland Williams listens during Tuesday’s council meeting.

PROPERTY TAX FINAL VOTE. The council gave final approval of the city’s 2016 property tax rate at Tuesday’s meeting.

The vote leaves the tax rate the same as last year — 18.2 cents per $100 value for real estate, and 19.12 cents per $100 value for personal property. The tax on motor vehicles was also unchanged at .24 cents per $100 value.

Due to an increase in property assessments this year, leaving the tax rate the same will generated approximately $63,000 in additional tax revenue.

In other business, the council:

— approved a tax moratorium request by the Domino Family Trust for the former site of the Bluegrass Entertainment and Expo Complex on Sutherland Road, in preparation for the new Whiskeycraft Distillery craft distillery operation.

According to the application, the company plans to spend up to $875,000 on the property, which will include the distillery, a visitor center/tasting room and an event venue. NFL football legend Lou Palatella and his wife Marci Palatella are behind the project.

— approved a request by the Bardstown Rotary Club to use of the City Hall lawn for its annual Kids Day event;

— approved an amendment to an agreement between the city and GRW Engineers that reduces the fee the city will by $16,000, from $110,000 to $94,000. The reduction is due to the deletion of a portion of the scope of engineering work GRW will perform at the Bardstown Water Treatment plant.

— gave final approval of a zoning amendment that puts guidelines back in the B-5 zoning classification that were inadvertently deleted when the regulations were reformatted.

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